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RAPAPORT... Diamond Fields International signed a joint-venture option agreement with Afri-Can Marine Minerals Corporation to further develop its own marine diamond leases in Namibia, where Afri-Can is operating. Under the agreement, Afri-Can and its local partner have the option to acquire a 90 percent interest in Diamond Fields' offshore diamond-mining leases numbered 111, 138, 139 and 32 in exchange for spending $3.3 million within two years on a program designed to bring the properties back into commercial production. Afri-Can is required to invest at least $800,000 on the mining leases within one year of any required regulatory approval to the transaction, and at least an additional $2.5 million within two years of the approval date. Afri-Can will also be liable for costs associated with maintaining the properties in good standing. Diamond Fields will retain a 10 percent interest in the properties and the right to 10 percent of all diamond production, without any liability for the capital and development costs for a period of two years. Ian Ransome, the CEO of Diamond Fields, stated, "The Afri-Can agreement is a positive step forward in restructuring of the company. It further develops the Namibian concessions and allows Diamond Fields to focus its resources on advancing other components of its marine portfolio. The agreement provides the company with a realistic opportunity to generate a dependable revenue stream without significant further cash investment." Pierre Léveillé, the CEO of Afri-Can, said, "We are very pleased with this agreement. The Diamond Fields portfolio of mining leases complements EPL 3403 and offers very good development potential. It will enable us to get a resource base and then start production. We feel that we are sitting on a strong project in a very solid industry."
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